Tuesday, August 12, 2014 - 11:47
Realtors push extension on tax-free cash gift ruling
At the end of this year, the regulation that allows parents to gift their children or others €100,000 tax free will expire. Realtors organization NVM-makelaars thinks the regulation should stay, as it is boosting the housing market, the Algemeen Dagblad reports. Since the rule was introduced last October by the Cabinet up to June this year, 50,000 Dutch people have given these financial gifts, it seems from figures of the Tax Administration Service. The treasury only banked on €20,000. House sales are now on the recovery after years of difficulty, mainly through these gifts. "The ruling to gift your children or others with €100,000 tax free has such a positive effect on the housing market, that it would be stupid to stop with it this year already", says Roeland Kimman of the NVM. "We are actively pleading in The Hague for an extension of it." It is unclear whether these calls from NVM, VNO-NCW and MKB Nederland will be heard. Next week, budget negotiations will begin between the Cabinet, the coalition and friendly opposition parties D66, ChristenUnie and SGP. About a possible extension of the ruling, these parties would not comment, the Algemeen Dagblad reports. "I ascertain with much happiness that the ruling works well", says Helma Nepperus of the VVD. She and Henk Nijboer of the PvdA do not, however, comment further. The ruling is so popular that the Cabinet does not need to enforce further austerity measures. According to the Tax Administration Service, gifters pay less tax on their assets, but against that, the recipients also have less mortgage loans to take out.